Every novice gambling investor thinks about how to allocate their funds as efficiently as possible? However, at the same time with the lowest risk, and also so that this profit appeared in the pocket of the investor as quickly as possible. That’s just free cheese is only in a mousetrap, which means you need to make a deliberate weighted decision. Real estate, securities, gold, currency – how many alluring possibilities to start earning directly from your home! But if investing in real estate and metals requires not only significant start-up capital, but also patience (this is a long-term investment market), then the stock and currency markets are quite capable of bringing high profits.
According to the 2012-2014 data, the fall of the securities market in the post-Soviet space was more than 55%, while the foreign exchange market showed, albeit slight, but steady and promising growth.
Stock Market Benefits:
– a large number of financial instruments. The number of issuers in the CIS countries alone is more than 300, and it is quite possible to get access to the world stock exchanges (Hong Kong, London or New York) through large brokers. The number of currency pairs in Forex reaches an average of 130;
– fluctuations in exchange rates are influenced by many different macroeconomic factors, whereas the securities market is most likely exposed only to news factors, namely, data on the profits of a company, information on its activities, etc.
Stock Market Disadvantages:
– The stock market is strongly tied to the economy of a country. In the event of a crisis in a single state, almost all stocks of companies in a given country fall in price;
– a high threshold to enter the market. Securities are sold on the stock exchange in large lots with a minimum price. Given the cost of the transaction and the cost of the package, the entrance to the market can be more than 10 thousand cu.
– low liquidity: it is always easier to sell a currency than securities of a company;
To understand the market you need to own both fundamental and technical analysis, and to be able to analyze financial statements, follow the development trends of the company.
The advantages of the foreign exchange market:
– work on the market 24 hours a day. Unlike the stock market, a deal can be concluded at any time with free access to the Internet;
– There are no sharp jumps in the price of currency pairs in a short period of time. If the value of a package of securities from negative news may fall by a factor of 2 in a day, then the average price fluctuation of currencies is +/- 2-3%;
– Leverage: the ability to make a deal is even in the absence of the necessary funds. Enough to make a deposit;
– the opportunity to try your hand at an emulator that completely simulates the foreign exchange market without the risk of losing investments.
Disadvantages of the foreign exchange market are also inherent. Only the trader is fully responsible for his losses, which depend only on him. Excessive confidence, emotionality, propensity for thoughtless risk are the factors of failures in the foreign exchange market.
As we can see, risks are inherent in any market, but on the other hand, having the necessary knowledge, having gained personal experience from their own mistakes, a persistent professional investor will be able to profit from any investment! It’s up to you to decide which goal to choose for yourself.